U.S. Household Finances Rebound

One signal for whether the U.S. economy is ready for a more robust recovery is the extent to which the financial position of households has rebounded. Here are some illustrative figures, taken from the January 2014 issue of Economic Trends from the Cleveland Fed.

December 2013 Consumer Credit: Credit Card Use Up

Written by Steven Hansen Econintersect analysis is that total consumer credit growth accelerated 0.1% month-over-month, and the year-over-year growth is 6.2% – up marginally from last month. The seasonally adjusted consumer credit headlines are showing a growth of 4.5% – the headline numbers are extremely noisy. Credit card growth was up in December compared to …

November 2013 Consumer Credit Rate of Growth Slows

Written by Steven Hansen Econintersect analysis is that total consumer credit growth has decelerated 0.1% month-over-month, and the year-over-year growth is 6.1% – down marginally from last month. The seasonally adjusted consumer credit headlines are showing a growth of 4.75% – the headline numbers are extremely noisy. There was significant backward revision to the data, …

Public Debt and Economic Growth: There Is No ‘Tipping Point’

by Markus Eberhardt and Andrea F. Presbitero, Voxeu.org Published at Voxeu.org 17 November 2013 The idea that there is a common tipping point in the relationship between public debt and economic growth is still widespread. However, this is likely due to a misinterpretation of the existing evidence. Once we allow for the relationship between debt …

Joe Sixpack’s Situation: 3Q2013 View Continues to Improve but at Slower Rate

Written by Steven Hansen A Federal Reserve data release (Z.1 Flow of Funds) for 3Q2013 provides insight into the finances of the average household – and our beloved “Joe Sixpack”. Our modeled “Joe Sixpack” – who owns a house and has a job, and essentially no other asset. We have also modeled a Joe who …